Are there disadvantages to using an arbitration agreement?

While there are many reasons to use arbitration agreements, parties should also understand the potential downsides.

As arbitration decisions are legally binding and there is not an appeals process, both parties have to accept the arbitrator's decision as final. This may be positive or negative for the parties depending on the situation.

Also, the information exchanged and presented in an arbitration proceeding is sometimes more limited than what could be presented or exchanged in court.